March 29, 2006 CBP Bulletin on Brown Sugar Chunks
In the March 29, 2006 issue of the U.S. Customs and Border Protection Bulletin (CBP Bulletin) (Vol. 40, No. 14), CBP issued a notice modifying a classification ruling on brown sugar chunks. CBP states that it is also revoking any treatment it has previously accorded to substantially identical transactions.
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According to CBP, the modification is effective for merchandise entered or withdrawn from warehouse for consumption on or after May 28, 2006.
Modification of One Classification Ruling
Brown sugar chunks. At issue are irregularly shaped brown sugar chunks, which are sold with white sugar chunks under the name of "A La Perruche." Only the brown sugar chunks are the subject of this modification.
The subject brown sugar chunks are created by first taking raw sugar and refining it through filtration, crystallization and maturation until the sugar develops into bars. The sugar forming the chunks have caramelized sugar syrup added to change the color to a brown or amber shade. The bars are broken into irregular lumps and are packaged into boxes along with white sugar chunks, which are imported into the U.S. for retail sale.
CBP is issuing HQ 967303 in order to modify HQ 952419 and reclassify the subject brown sugar chunks under HTS subheading 1701.91, which provides for "Cane or beet sugar and chemically pure sucrose in solid form: Other: containing added flavoring or coloring matter" rather than under HTS 1701.11.0125 (1992), as raw cane sugar, not containing added flavoring or coloring matter.
CBP notes that if the subject brown sugar chunks are described in additional U.S. note (AUSN) 5 to Chapter 17 and entered pursuant to its provisions, the specific classification is HTS 1701.91.1000. If subject brown sugar chunks are not described in AUSN 5 to Chapter 17 and not entered pursuant to its provisions, the applicable classification is HTS 1701.91.3000, which may be subject to additional duties based on their values as described in certain HTS Chapter 99 subheadings.
CBP states that in HQ 952419, it determined that because caramelized syrup (contained in the subject brown sugar chunks) is itself a sugar product, and is commonly added to refined sugar in order to produce brown sugar, that the addition of the caramelized syrup to the sugar was not considered adding coloring or flavoring.
CBP now disagrees with its previous finding-it now states that the purpose of adding the caramelized sugar is to change the color of the sugar in subject brown sugar chunks. Further, CBP takes into consideration a November 2003 ruling by the Harmonized System Committee of the World Customs Organization (WCO), which decided that the addition of a small quantity of caramel to produce brown sugar chunks was adding a coloring matter.
Therefore, because CBP finds that the caramelized syrup contained in subject brown sugar chunks constitutes "added coloring" and based on the WCO's decision, it holds that the subject brown sugar chunks are classified in subheading HTS 1701.91.
new:
1. (if described under AUSN 5 to Chapter 17) HTS 1701.91.1000, 3.6606/kg less 0.020668/kg for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 3.143854/kg.
2. (if not described under AUSN 5 to Chapter 17) 1701.91.3000, 35.74/kg-certain additional duties may apply under 9904.17.08 and 9904.17.16.
previous: HTS 1701.11.0125 (1992), 1.4606/kg less 0.020668/kg for each degree under 100 degrees (and fractions of a degree in proportion) but not less than 0.943854.
(See ITT's Online Archives or 01/31/06 news, 06013135, for BP summary of proposed HQ 967303 on brown sugar chunks.)
March 29, 2006 (Vol. 40, No. 14) available athttp://www.cbp.gov/xp/cgov/toolbox/legal/bulletins_decisions/bulletins_2006/vol40_03292006_no14/